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REGIONAL INTEGRATION

REGIONAL INTEGRATION. Presentation by Mark D. Tomlinson. REGIONAL INTEGRATION. Context: 47 countries with average GDP $4bn Combined GDP = Belgium, 50% of Spain

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REGIONAL INTEGRATION

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  1. REGIONAL INTEGRATION Presentation by Mark D. Tomlinson

  2. REGIONAL INTEGRATION Context: • 47 countries with average GDP $4bn • Combined GDP = Belgium, 50% of Spain • Small domestic markets + generally high production costs + challenging investment climates = limited investment (Africa < 2% global FDI)

  3. REGIONAL INTEGRATION • Growth (2003, all NEPAD): • 16 countries ~ 3% pa • 16 countries 3%-5% pa • 18 countries > 5% pa • Implies • Per capita growth mostly 0%-2% • Limited progress on poverty reduction • Many MDGs look elusive • Continuing vulnerability to shocks, conflict

  4. REGIONAL INTEGRATION “The regional agenda is key to accelerate development in West Africa; national strategies have proved insufficient.” Dr. Mohammed Ibn Chambas, Executive Secretary, ECOWAS October 2004

  5. REGIONAL INTEGRATION “If only West Africa was a single country. Then, perhaps, we would stand a chance.” Bode Agusto Director, Budget Federal Ministry of Finance Nigeria, May 2004

  6. REGIONAL INTEGRATION Development objective: • Assist national clients and regional organizations to develop larger, more competitive and more successful economic spaces. Program objective: • Deliver additional development impact at the country level through regional solutions to development challenges and regional complements to national programs.

  7. REGIONAL INTEGRATION Three dimensions to competitiveness holding opportunities for additional impact through regional approaches: • Markets: Trade policy Financial sector development Investment Climate • Productivity: Infrastructure Knowledge development Technology ICT • People: Basic needs Skills development Vulnerability

  8. REGIONAL INTEGRATION So what’s new? • Enhance alignment of regional work, strategically among sectors + with country programs • Broad ownership of regional programs: ‘integrate’ regional integration • Develop more multi-country programs and projects • Go faster Use – and build upon – regional knowledge base to do this.

  9. REGIONAL INTEGRATION Steps forward: • Draw upon sectors to propose knowledge- based strategic framework for integration in each sub-region. • Regional teams discuss/agree priorities in joined-up programs with clear interfaces: trade, infrastructure, investment climate, knowledge, human development.

  10. REGIONAL INTEGRATION • Discuss /agree priorities with countries concerned, with CMUs. • Less emphasis on ‘formal’ regional PRSPs;more on practical opportunities for integration. Focus on areas where there is professional agreement on priority and political traction.

  11. REGIONAL INTEGRATION Strategy: Dev. Impact. PRSP1 PRSP2 PRSP3 PRSP4 RIAS More Dev. Impact Agreed strategic framework CAS 4 CAS 2 CAS 1 CAS 3 Regional Markets CAS 2 Productivity CAS 1 CAS 4 CAS 3 People

  12. REGIONAL INTEGRATION H.E. President Wade of Senegal NEPAD Stakeholders Forum October 2004 “When I look at PRSPs, where do I find regional integration? It’s not there”

  13. REGIONAL INTEGRATION Program at a glance: • Total $3.9m (approx. 3.2% of CMUs) • 50% West, 20% East, 15% Central, 15% Southern • Policy, ESW, TA: West 50%, East 10%, Central 10%, Southern 30%. (FY05, 14 IDFs) • Lending: West 47%, East 18%, Central 23%, Southern 12%. (FY05 $ 250-300m) • Lending pipeline, planned ESW not yet strongly developed. Additional BB request FY05.

  14. REGIONAL INTEGRATION Operational issues: • Strategic engagement: sub-regional frameworks drawing upon sector knowledge by CMUs. • Application of resources in line with these frameworks • Re-balance relationships with RECs. • Build policy engagements through strengthened knowledge base. • Support priority NEPAD investments. Scale-up, innovate.

  15. REGIONAL INTEGRATION Where we would like to be in 12 months: • Regional teams operate as CTs, around agreed strategic agenda. • More extensive, policy and knowledge engagement, backed by solid ESW. • Significant investment support (build up to ~10% AFR) for priority regional projects, innovations. • Decentralization of responsibility. Fully staffed, additional field presence.

  16. Thank you! Look forward to working (regionally) together

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